Johnson Controls International PLC (JCI)
Working capital turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 22,947,000 | 26,703,000 | 25,213,000 | 23,883,000 | 22,321,000 |
| Total current assets | US$ in thousands | 11,179,000 | 10,737,000 | 11,685,000 | 9,998,000 | 10,053,000 |
| Total current liabilities | US$ in thousands | 11,955,000 | 11,084,000 | 11,239,000 | 9,098,000 | 8,248,000 |
| Working capital turnover | — | — | 56.53 | 26.54 | 12.37 |
September 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $22,947,000K ÷ ($11,179,000K – $11,955,000K)
= —
The working capital turnover ratio measures the efficiency of Johnson Controls International PLC in utilizing its working capital to generate sales revenue. A higher working capital turnover ratio indicates that the company is effectively using its working capital to support sales growth.
From the available data:
- In 2020, the working capital turnover ratio was 12.37, indicating that for every dollar of working capital, the company generated $12.37 in sales.
- In 2021, the ratio increased to 26.54, reflecting an improvement in the company's efficiency in utilizing its working capital to generate sales.
- In 2022, the ratio further increased to 56.53, showcasing a significant enhancement in the company's ability to convert working capital into sales revenue.
This trend suggests that Johnson Controls International PLC has been more efficient in managing its working capital over the years, resulting in a higher turnover ratio. This improvement indicates a positive development in the company's operational efficiency and financial performance.
Peer comparison
Sep 30, 2024